Bressler Risk Blog

“Reddit Accuses Former Law Firm of Switching Sides to Defend Perplexity AI” —

• “Reddit is fighting to prevent its former law firm, Proskauer Rose, from representing Perplexity AI in a federal data-scraping lawsuit, alleging that the firm dropped the social media company to take on its courtroom opponent despite an earlier promise to stay out of the case. In competing filings submitted October 9, 2026, to U.S. District Judge Paul A. Engelmayer in Manhattan, Reddit and Proskauer disputed whether the firm’s earlier work on a separate whistleblower lawsuit creates a conflict that prevents it from defending Perplexity in the data-scraping case.”
• “The separate whistleblower lawsuit was brought by former Reddit employee Jutta Williams, who alleged she was fired after raising concerns about the company’s data privacy and licensing practices. Proskauer represented Reddit in that case, which involved its licensing arrangements with Google and OpenAI.”
• “That earlier work allegedly exposed Proskauer to confidential information about Reddit’s agreements with Google and OpenAI, including practices now at issue in its lawsuit accusing Perplexity of improperly collecting content through Google search results.”
• “After Perplexity approached Proskauer about taking over its defense, the firm sought Reddit’s consent and was refused. It subsequently moved to withdraw from the whistleblower proceedings, prompting objections over ongoing discovery and the difficulty of finding replacement counsel.”
• “The social media company eventually agreed to the withdrawal in November 2025 after allegedly receiving assurances that Proskauer would stay out of the Perplexity litigation. The firm disputes that any binding restriction was imposed, setting up the current fight over whether it can represent Reddit’s courtroom opponent.”
• “In its defense, Proskauer characterizes the earlier representation as an employment dispute involving retaliation and discrimination allegations, distinct from the data-scraping claims against Perplexity. Attorneys assigned to the new case have also been screened from confidential information obtained while representing Reddit, according to the firm.”
• “The challenge also invokes the ‘hot potato doctrine,’ which can prevent lawyers from dropping an existing client to represent another with conflicting interests. Reddit argues that Proskauer withdrew to pursue Perplexity’s business and should face the stricter rules governing conflicts involving current clients.”
• “Under the rules governing former-client conflicts, Proskauer argues that disqualification generally requires a substantial relationship between the two matters, a connection the firm disputes in this case.”

In Massachusetts: “Insurance – Defense counsel – Conflict of interest” —

• “Where a plaintiff has claimed that the defendant insurance company has no right to control the defense of asbestos lawsuits against the plaintiff that the insurer has an obligation to defend, the insurer should be awarded summary judgment because the plaintiff has not shown that there is any actual or meaningful potential conflict of interest that would justify rejecting the insurer’s selection of counsel and control of the defense as to those claims for which it has relinquished or not asserted a reservation of rights.”
• “‘The fundamental dispute between the parties out of which all of Watts’ claims arise revolves around who gets to control the defense of the Asbestos Lawsuits against Watts that FFIC has an obligation to defend on and after October 1, 2024. …”
• “‘The first issue here is whether FFIC has withdrawn its reservation of rights with respect to the Asbestos Lawsuits against Watts Regulator that it has an obligation to defend as of October 1, 2024. …”
  “‘In July 2024, FFIC formally notified Watts that it ‘fully withdraws’ its reservations of rights with respect to claims that FFIC is or will be defending on or after October 1, 2024, and it has continued to do so for all new claims against Watts Regulator since October 1, 2024 which assert a possible exposure during the FFIC Policy period. At oral argument, FFIC reaffirmed its position that it has withdrawn its reservation of rights with respect to these claims. … Such admissions to the court are binding on FFIC. …”
• “‘Watts argues that, even if FFIC has withdrawn its reservations of rights, a conflict bars FFIC from assuming control of Watts’ defense, at least in many of the Asbestos Lawsuits. Specifically, Watts argues that FFIC has a conflict because (a) it seeks to defend claims for which (i) Watts potentially bears significant uninsured indemnity responsibility; (ii) FFIC disclaims any liability obligation whatsoever; and (iii) indemnity depends on evidence to be gathered during the underlying case; (b) because certain of the Non-Party Insurers have agreed to defend subject to a reservation of rights, Watts has the right to control the defense as to those insurers, and FFIC’s selected counsel will be subject to conflicting instructions; and (c) FFIC has required Watts to give up its right to defend with respect to the Non-Party Insurers as a condition of FFIC providing a defense. …”
• “‘In short, Watts has not shown that there is any actual or meaningful potential conflict of interest that would justify Watts rejecting FFIC’s selection of counsel and control of the defense as to those claims for which it has relinquished or not asserted a reservation of rights. …”
• “‘FFIC has abided by the terms of the FFIC Policy. By withdrawing their reservation of rights, FFIC is entitled to control the defense in the absence of a conflict of interest with Watts. Watts should not have reasonably expected to control the defense merely because other insurers have ceded control to Watts. Watts has no factual basis for a claim for breach of the implied covenant of good faith and fair dealing. …”
• “‘Watts also brings a claim against FFIC for violation of G.Lc. 93A (Count III). … ‘Here, Watts’ claim under Chapter 93A arises from the same set of facts as Watts’ breach of contract and breach of implied covenant of good faith and fair dealing claim. Watts alleges that by claiming a right to control the defense while reserving certain rights, FFIC has violated Watts’ reasonable expectations under the FFIC Policy, breached the implied covenant of good faith and fair dealing, and committed an unfair and deceptive act. I have already found that FFIC has withdrawn its reservations of rights. Without a conflict of interest, the claim for breach of implied covenant of good faith and fair dealing fails and with it the Chapter 93A claim fails as well.'”
  “Watts Regulator Company, et al. v. Fireman’s Fund Insurance Company (Lawyers Weekly No. 09-081-26) (18 pages) (Krupp, J.) (Suffolk Superior Court) (Civil No. 24-2530-BLS1) (Aug. 20, 2026). “
• Decision: here.

Now in its fifth year, the 2026-2027 Law Firm Risk Staffing Compensation Survey report is now on its way to those who participated! (And also now on file with the US Copyright Office, so don’t go asking your friends for their copy.) If you took the survey, please watch for your reports/benchmarks via email today!

This year, we saw 78 participants share detail on 576 US staff and management positions.

We had great response levels from managers in the optional Q&A portion. That generated another wave of fascinating input and response, coming in at 12 pages of commentary, which is presented in the report, grouped by firm size bands, addressing five questions:

1. 1. What are your top challenges tied to risk staff recruiting, training, and career development?
   2. What are your goals for risk staff recruiting, training, and career development in 2027?
   3. To what extent are you adding new/emerging roles to your risk organization (e.g. OCG, AI related)? If new roles aren’t yet defined or funded, which would you like to add if possible?
   4. Are there staffing model changes you’re pursuing or would like to pursue moving forward?
   5. What risk initiatives, if any, is your firm focusing fresh investment in new staff, new resources for 2027?

For those who participated, I expect to have PDFs in your inboxes by the end of the day. Depending on your participation:

• Managers who contributed team data and participated in the Q&A will receive the “extended edition” of the report, coming in at 30 pages, which includes peer Q&A responses
• Managers who contributed team data only will receive the “standard edition” of the report, which includes complete data on all positions and compensation data included in the extended version (20 pages).
• Individual contributors who shared their personal details, will receive a personal benchmark compensation summary relevant to their specific role and firm demographics.

If you didn’t participate…

• If your law firm did not participate in the survey, copies are available for a fee.
• If you didn’t participate individually, personalized benchmarks are also available for a (lower) fee.
• Please get in touch for details. 

I’d like to thank everyone who took the survey this year.

Thoughts are brewing for 2027.

Thanks!

“Swier Law Firm ordered to pay $572,000 after malpractice trial” —

• “A South Dakota law firm with connections to the Mitchell area is facing a judgment of more than $572,000 following an 11-day malpractice trial earlier this year over its treatment of an elderly client.”
• “In the Hickey case, a Minnehaha County jury found Swier Law Firm, founder Scott Swier and attorney Lindsay Harris liable in a lawsuit brought by the estate and trust of former client Shirley A. Hickey.”
• “The lawsuit alleged legal malpractice, breach of fiduciary duty and breach of contract. It centered on whether the firm violated its duties to Hickey by pursuing legal action against her after she had attempted to end the attorney-client relationship and move her estate matters to new counsel.”
• “The lawsuit, Denison v. Swier Law Firm, was brought by Jeffry Denison, who serves as the personal representative of the estate of the late Shirley A. Hickey and trustee of her trust. The case continued after Hickey’s death in September 2019, with Denison pursuing her estate’s and trust’s claims against the defendants.”
• “The jury awarded Hickey’s estate and trust $309,768.68 in compensatory damages. Circuit Judge Mandi Mowery later added $241,275.38 in prejudgment interest and $21,247.40 in court costs, bringing the total judgment to more than $572,000. The jury assigned 35% of the fault to Swier, 35% to Harris and 30% to Swier Law Firm. Henderson, who also was named as a defendant, was assigned 0% fault.”
• “The case dates to 2017, when Hickey hired Swier Law Firm for estate planning. Harris drafted the Shirley A. Hickey Living Trust. In August 2017, Hickey sought new legal representation from attorney Jack Theeler. Theeler asked Swier Law Firm to transfer Hickey’s files, and Hickey also personally requested the files.”
• “Instead, Swier Law Firm filed an ex parte petition seeking a guardian and conservator for Hickey without notifying her, according to court records. The court ultimately determined that neither a guardian nor conservator was necessary.”
• “The following year, Swier directed Harris and Henderson to represent Hickey’s daughter, Kristina Lippert, in a lawsuit against Hickey involving the trust the firm had previously drafted for Hickey.”
• “The lawsuit was filed in March 2018. In August of that year, Circuit Judge Douglas Hoffman disqualified the firm and Harris because of the conflict of interest. ‘It’s a slam dunk. They should have withdrawn — well, they should have never brought this action in the first place,’ Hoffman said during the proceedings.”
• “The firm billed Hickey and her trust more than $144,000 between April 2017 and September 2018, including fees connected to the litigation against her, according to the South Dakota Supreme Court’s 2020 decision in the case.”
• “The jury also found by clear and convincing evidence that Swier, Harris and the firm engaged in oppression, malice, intentional misconduct or willful and wanton misconduct. The jury, however, awarded no punitive damages.”
• “In a 2020 decision, the Supreme Court said Swier admitted to formal accusations that he violated professional-conduct rules involving conflicts of interest, supervision of attorneys and conduct prejudicial to the administration of justice. The court suspended him from practicing law for one year.”
• “The disciplinary case included the Hickey matter. The Supreme Court found that Swier violated rules concerning duties to former clients and supervisory responsibilities, among other professional-conduct rules. Two associates also were disciplined by the State Bar Disciplinary Board.”
• “Those prior disciplinary proceedings became part of the evidence presented to the jury in the 2026 civil trial.”

“Leaked chats show Russian extortion gang sending ‘agents’ into US law firms” —

• “Members of a Russia-based cyberextortion gang plotted to send operatives into U.S. law firms, kidnap business executives and even recruit military personnel to spy on submarine-based nuclear forces, according to leaked chats reviewed by Recorded Future News.”
• “The archive, posted to a bespoke .onion site in early October by an unidentified source who did not state a motive, contains thousands of messages from August 2025 to September 2026.”
• “In those messages, members track dozens of victims, haggle over multimillion-dollar payments and direct operatives based in the United States whom they call ‘agents.’ Some of the named organizations have not publicly acknowledged a breach.”
• “Recorded Future News could not verify whether the most extreme schemes were ever attempted. However, parts of the cache have been corroborated independently. Blockchain analysis firm Chainalysis examined cryptocurrency addresses contained in the leak and said it could tie them to known extortions by the Silent Ransom Group, which is also tracked as Luna Moth and Chatty Spider. The company cautioned that it could not ‘speak to the totality of claims’ documented in the archive.”
• “The FBI has also documented the group’s most unusual tactic for a Russian extortion group: recruiting what the gang calls ‘agents’ to physically infiltrate victims’ offices. A flash alert earlier this year warned that members of the Silent Ransom Group were posing as IT personnel to gain physical access to computers.”
• “In one negotiation shared in the chats, a law firm’s representative told the extortionists that the firm knew an individual had entered its New York office and copied files onto a flash drive.”
• “The firm said its executives had authorized $1 million to settle the demand but wanted proof that every digital and physical copy of its information would be destroyed, citing evidence that the LockBit ransomware gang had failed to delete data belonging to victims who paid.”
• “The internal conversations show members plotting for months about how to get their ‘agents’ into firms’ offices. One participant suggested buying delivery uniforms and insulated bags. ‘We buy these insulated bags and uniforms for agents,’ he wrote, before outlining a pizza delivery ruse in which an operative would get through reception by delivering pizza and then pose as an IT worker in the main office itself.”
• “About 50 organizations, mostly law firms, appear in the records. Several have publicly disclosed cyber incidents this year, while others have made no public statement.”

David Kluft asks: “Can I depose a witness who was my former client in a topically similar case?” —

• “A college basketball player sued a University in NE federal court, alleging that the coach pursued a sexual relationship with her while she was a student and that led to her removal from the team. The lawyer for the University wanted to depose one of the plaintiff’s witnesses, but the problem was that this witness was a former client of the lawyer in a matter ‘generally described .. as involving potential complaints or past allegations of sexual misconduct against [the witness] by an unrelated third party.'”
• “The witness filed a motion to quash the deposition and to disqualify the University’s counsel. The Court looked to whether the prior matter substantially related to the present one. The matters might have been substantially related ‘if there is a substantial risk that confidential factual information ordinarily obtained in the prior representation would materially advance the client’s position in the subsequent matter.'”
• “Here, the witness argued that the prior representation gave counsel knowledge of his ‘finances, relationships, associations, character and credibility.’ The Court held this didn’t meet the standard because those categories of information were so broad they could apply in any case. Here, the ‘people, events, and legal issues are entirely different,’ despite the superficial ‘topical similarity,’ so there was no substantial relationship.”
• “The court also found that disqualification was not required because the witness was not actually adverse to the University, because he had no real legal exposure. Even if there had been a substantial relationship, disqualification ‘does not extend to situations where a former client faces nothing more than the ordinary obligations of a fact witness.'”
• Case file: here.

“Judge May Preside in Matters Involving Attorney Who Exchanges Case Referrals With Spouse: Judicial Ethics Opinion 26-34” —

• “Digest: Provided the judge can be fair and impartial, he/she may preside in matters involving an attorney to whom the judge’s spouse has referred occasional, discrete cases, and from whom the judge’s spouse has received such cases. The judge need not make any disclosure.”
• “Rules: 22 NYCRR 100.2; 100.2(A); 100.3(E)(1); 100.3(E)(1)(c), (e); 100.3(E)(2); Opinions 20-126; 15-33.”
• “Opinion: The inquiring judge’s spouse, who works in a specialized area of law, occasionally refers cases to another attorney and occasionally accepts referral of cases from him/her. The judge indicates they ‘do not have a formal arrangement, and no referral fees are paid’ between them. The judge asks if he/she may preside in cases involving the other attorney.”
• “Clearly, a judge ‘may not preside over any matters in which the spouse was involved or has an economic interest, including those referred by the spouse, or matters in which the attorney appearing before the judge has an ongoing counsel relationship with the judge’s spouse’ (Opinion 15-33).”
• “However, a judge’s ethical ‘obligations based on a business or financial relationship between their spouse and a particular individual are necessarily fact-dependent’ (Opinion 20-126). We have advised that neither disqualification nor disclosure is required when ‘attorneys to whom the judge’s spouse has referred occasional, discrete cases, or from whom the judge’s spouse has received such cases, appear in the judge’s court’ (Opinion 15-33). In reaching this conclusion, we emphasized (id.):”

Hat tip to a risk expert colleague who noted an interesting “frontier” spotlight of conflicts, client due diligence, and compliance in this AI case study: “How law firm Gilbert + Tobin governs and scales AI with OpenAI” —

• “Gilbert + Tobin used [OpenAI] Codex to help build an AI-enabled workflow for selected conflict, anti-money laundering, politically exposed person, and know-your-customer checks. It completes research and processing steps, then produces a report for human review and sign-off. Selected checks that previously took up to eight hours can now be completed in minutes.”
• “When generative AI began reshaping knowledge work, Gilbert + Tobin saw an opportunity—not to change how it delivers legal advice, but to raise the standard of the operational work that supports it. The firm set out to give every operations team sharper tools for research, drafting, and analysis, while preserving the governance and professional accountability its clients expect.”
• “ChatGPT Enterprise was introduced first to operations teams, where practical use cases could be tested in a controlled environment. From there, adoption expanded into marketing, business development, recruitment, finance, technology, business transformation, and parts of the legal practice. Throughout, the focus has remained on how the firm operates, not on displacing the professional judgment at the heart of its legal services.”
• “Gilbert + Tobin paired that leadership support with role-specific enablement. Instead of relying on generic training, the business transformation team joined individual team meetings to demonstrate workflows tailored to marketing, finance, recruitment, operations, and other functions. Internal videos, showcases, challenges, and use-case stories helped employees keep pace as ChatGPT gained new capabilities.”
• “Gilbert + Tobin handles confidential client and business information, including information subject to different client requirements. Its AI rollout was supported by clear guidance on approved tasks, what employees could enter, and how outputs should be reviewed. The firm also assessed contractual protections, role-based access, data-processing requirements, and administrative controls.”

“Latham & Watkins AI Adoption: How BigLaw Is Deploying Generative AI” —

• “The firm has stood up a Generative AI Task Force, deployed Harvey across thousands of attorneys, rolled out Microsoft 365 Copilot, published external client guidance on AI risk, and built mandatory training into associate development.”
• “The use case BigLaw firms talk about least and undervalue most is conversational client intake and matter onboarding. Latham, like every AmLaw firm, runs a meaningful intake process every time a new matter opens — conflicts checks, engagement letter drafting, scope definition, billing arrangement capture, KYC where relevant, and matter-team selection. Today, most of this happens through a combination of email threads, Word documents, intake portals, and a back-and-forth between business development, the originating partner, the conflicts team, and the new business intake group.”
• “That entire workflow is a conversation pretending to be a form. Engagement letter intake portals demand structured fields (‘matter type,’ ‘billing arrangement,’ ‘estimated fees,’ ‘key parties’). But the signal a client gives over email is unstructured — ‘this is a complicated cross-border thing, we expect to see a counter-bid in two weeks, I need someone who’s worked with the German regulator before, the budget is whatever it has to be.’ Forms flatten that signal. Senior partners then spend their own time translating client narrative into the structured intake fields.”
• “Conversational AI is the right instrument here. An AI intake agent can ask the natural follow-ups a senior associate would — ‘you mentioned a counter-bid; do you want us to start preparing defensive materials now or wait?’ — and capture the matter context in the client’s own language before any structured fields are populated. The structured fields then get derived from the conversation, not demanded up front.”

“Law firm intake that runs the conflict check before anyone calls the prospect back” —

• “An intake workflow for law firms that turns web forms, chats, emails and voicemails into structured intake: matter type, parties, jurisdiction and urgent deadlines. It searches the practice management system for conflicts across the parties and their corporate groups, triages each inquiry against the practice groups’ criteria, and prepares the engagement letter and a consultation slot. A person clears every possible conflict and a lawyer accepts every matter. The assistant never gives legal advice and says it is an AI.”

And in terms of OCGs, one consultant hypothesizes: “Ken Crutchfield: Taking BigLaw Private? The Implications Of Kirkland’s Decision To Stop Disclosing Financials” —

• “Kirkland & Ellis made headlines again when it stated it will no longer disclose financial information to The American Lawyer magazine and other media after 2026. Firm leadership said financial disclosures could put too much focus on quantitative metrics over the quality and caliber of the firm’s legal services.”
• “Clients will still care about financials and reputation, but their interests aren’t necessarily predicated on profit per equity partner and other top-level metrics reported publicly in an Am Law list. They require compliance with Outside Counsel Guidelines (OCGs) to manage supplier risk and pricing, and compliance.”
• “The scope of those guidelines continues to expand, and they now can cover billing, staffing, technology, security, and AI use. It is not difficult to imagine negotiated disclosures of financial metrics privately as a necessary condition of the ongoing relationship.”

“The AI Agent Privacy Problem: Who’s Liable When Your Legal AI Shares Client Data?” —

• “AI agents are no longer a future-facing concept in legal practice. They are already drafting motions, reviewing contracts, conducting due diligence, managing calendars and email, and in some deployments taking multi-step actions across systems. They process some of the most sensitive data that exists: client communications, litigation strategy, financial records, and personal identifying information. Adoption continues to outpace the guardrails designed to protect the data those agents touch.”
• “That gap is still where the liability lives, and the last several months have sharpened the contours of it.”
• “In June 2026, the American Arbitration Association and Integra Ledger announced the Legal Context Protocol, an open standard intended to attach discoverable, verifiable legal terms, consent, and dispute-resolution pathways to agent-to-agent commercial transactions. Founding contributors included Google, IBM, Circle, Wayfair, and others. The protocol remains a useful piece of infrastructure for agentic commerce. It does not, however, resolve the distinct confidentiality, privilege, and professional-responsibility problems that arise when agents operate inside legal workflows.”
• “When a lawyer uses a traditional software tool, the workflow is relatively clear: the attorney inputs information, the tool processes it, and the attorney reviews the output. Privilege and confidentiality obligations run through the attorney’s conduct. AI agents disrupt that model. An agent tasked with drafting, reviewing, or conducting diligence does not simply process information. It can ingest it, retain it (at least temporarily), route it through third-party infrastructure, and in some configurations act on it sending messages, updating records, or accessing systems before meaningful human review occurs.”
• “ABA Model Rule 1.6 still requires attorneys to make reasonable efforts to prevent the inadvertent or unauthorized disclosure of information relating to a representation. ABA Formal Opinion 512 (2024) remains the foundational ethics guidance: lawyers must understand the specific tool’s capabilities and limitations, evaluate disclosure risks before inputting client information (especially into self-learning systems), and obtain informed client consent where the tool’s design creates a material risk of disclosure. Boilerplate engagement-letter language is not sufficient. State bars have continued to apply and refine this framework. Oregon’s Formal Opinion 2026-208, for example, addresses chatbots and AI agents used for marketing and intake, emphasizing competence, supervision, and the lawyer’s ongoing responsibility for accuracy and confidentiality. Florida and other jurisdictions have issued parallel guidance.”
• “The most concrete statutory development arrived at the end of September. On Sept. 30, 2026, California Governor Gavin Newsom signed SB 574, the first state statute specifically regulating generative AI use by attorneys, arbitrators, judicial officers, and alternative dispute resolution providers. Effective Jan. 1, 2027, the law:”
• “When an AI agent generates a contract summary, flags litigation risk, prioritizes documents, or drafts a demand letter, the question whether that output constitutes or materially influences an automated decision with a significant effect on a data subject is no longer purely theoretical. In some jurisdictions it may trigger notice, opt-out, access, or human-review rights that most current legal AI deployments are not designed to honor. Law firms and legal departments that treat these obligations as ‘just another vendor issue’ are exposing themselves and their clients.”
• “Vendor agreements data processing addenda, confidentiality clauses, and terms-of-service representations remain necessary but still not sufficient. They govern the firm-provider relationship. They do not create rights for clients whose data is processed, nor do they substitute for the attorney’s independent ethical and legal duties. Attorneys deploying agents must still ask, and document, the practical questions: Where does the data go? Who can access it? Is it used for training? What is the retention period? What happens in a breach? What permissions does the agent have, and can those permissions be tightly scoped and monitored?”
• “The last few months have also shown that agent behavior can exceed intended scope. Documented incidents involving OpenAI and other developers’ agents attempting or achieving unauthorized access to external systems prompted a Sept. 30 Senate hearing and, on Oct. 1, the announcement of the bipartisan AI Agent Accountability Act by Senators Josh Hawley and Chris Murphy. We’ve seen a rise in law firm data breaches meanwhile News Nation and Fox Business News had me on air to discuss the ‘pacing of the frontier’ and the AI risks ahead. These new proposals would extend Computer Fraud and Abuse Act liability to both operators (for knowingly operating an agent that recklessly causes hacking damage or loss) and developers (for failing to implement reasonable safeguards when they knew or had reason to know of the agent’s hacking capabilities). It would also empower the attorney general and state attorneys general to seek injunctions. Parallel proposals such as the CLAIM Act discussion draft seek to clarify civil liability when agent conduct would be tortious or criminal if performed by a person. These bills are not yet law, but they signal that ‘the AI did it’ is unlikely to be an accepted defense, and that both developers and deployers face increasing scrutiny.”
• “Privilege risks have also moved from theoretical to concrete. Courts have held that materials generated through consumer-grade tools whose terms permit retention or third-party access can destroy attorney-client privilege and work-product protection. The reasonable expectation of confidentiality simply does not exist under those terms.”
• “Technical protocols such as the Legal Context Protocol address one slice of the agentic economy commercial transactions. Professional responsibility rules, state statutes like California’s SB 574, evolving privacy and ADMT requirements, and emerging liability proposals address another. Courts have not yet issued definitive rulings on the full range of agent-related confidentiality and privilege questions, but the direction of travel is clear: the lawyer or firm that deploys the agent remains responsible.”
• “Attorneys who build documented data-governance frameworks around their AI tools—restricted-access environments, least-privilege permissions, human review gates for consequential actions, client disclosure where required, and verification protocols will be better positioned than those who treat agents as ordinary software and wait for a court or bar to define the boundaries after an incident. The liability question is no longer purely open. The answers are beginning to arrive, and they continue to point to the human professionals who choose to deploy the tools.”

“Willkie, WilmerHale Trade Conflict Allegations in Terror Case” —

• “Two Big Law firms are fighting each other over their right to work on a case in which victim families are seeking billions from a company that was convicted of funding terrorism. “Willkie Farr & Gallagher and WilmerHale are trading allegations of ethical conflicts, arguing the other should be removed from the case. The disqualification efforts ramped up this week when partners from both firms sent judges letters attacking their counterparts.”
• “Dismissing either firm could delay several cases, some of which are set to end fact discovery this fall, that together claim more than $2 billion in damages. In one of the cases, about 110 plaintiffs are each seeking more than $10 million in damages.”
• “Holcim Ltd.’s Lafarge in 2022 pleaded guilty to making more than $6 million in payments to benefit groups including Islamic State and al-Qaeda’s Al-Nusrah to keep open a cement plant during the civil war in Syria. The building materials maker paid more than $775 million in criminal fines and forfeiture in becoming the first company the US Justice Department charged with providing support for terrorism, DOJ said.”
• “Lee Wolosky, who joined Willkie in 2025, filed a civil case against Lafarge — one of many the company faces — in 2022. His case seeks monetary damages for roughly 1,000 plaintiffs, many of whom are families of US military members killed by ISIS. Court documents show the case could cost ‘billions.’ WilmerHale joined Lafarge’s defense late last year and sought Willkie’s dismissal starting in February.”
• “According to WilmerHale, Willkie’s conflict stems from a separate group of that firm’s lawyers who represented Lafarge’s former chief executive officer in criminal proceedings in France. The CEO, Bruno Lafont, was sentenced to six years in prison in April. Willkie lawyers began representing Lafont in 2016 related to an internal investigation the company pursued into the payments being made in Syria, court documents show.”
• “‘The same firm is thus advancing irreconcilable positions about the same person and events in concurrent proceedings,’ David Bowker, partner-in-charge of WilmerHale’s Washington office, wrote Monday to US District Judge Nicholas G. Garaufis.”
• “Willkie in April called WilmerHale’s dismissal effort ‘belated and tactical.’ When Wolosky joined Willkie, the firm erected an ethical wall screening lawyers who worked on Lafont’s criminal case from those prosecuting the civil case against his company, firm lawyers said in court papers. The firm also said an ethical screen had already been in place for the criminal case dating back to 2018, though it didn’t specify the reason.”
• “Still, the firm emailed all the plaintiffs in the case to inform them of WilmerHale’s dismissal effort. ‘No plaintiff has expressed support for disqualification,’ Wolosky wrote. (Bowker this week said some plaintiffs in depositions were not aware of the details of the conflict.)”
  Willkie’s Allegations”
• “Willkie claims WilmerHale is conflicted in the case due to its prior work advising the family of American journalist Jim Foley, who ISIS killed in 2014. WilmerHale advised the family that it could not pay ISIS for his release, yet it plans to argue that Lafarge’s payments to ISIS were made under threat of violence, according to Willkie.”
• “Willkie also says WilmerHale failed to promptly screen partner Matthew Olsen from the Lafarge defense. Olsen joined WilmerHale last year after helping the government secure Lafarge’s guilty plea, Willkie claims. Olsen has since left the firm.”
• “The case is: Finan et al v. Lafarge S.A., E.D.N.Y., 1: 22-cv-07831.”

“California SB 574: What Legal Departments Should Know About New Rules for Lawyer Use of GenAI” —

• “California has enacted new statutory requirements governing attorneys’ and arbitrators’ use of generative artificial intelligence (GenAI). Governor Gavin Newsom signed Senate Bill 574 (SB 574) on September 30, 2026 and the law takes effect January 1, 2027. The legislation addresses attorneys’ use of GenAI, court filing verification requirements, arbitrators’ use of GenAI, judicial guidance, and the State Bar of California’s voluntary certification program for alternative dispute resolution (ADR) providers.”
• “SB 574 does not categorically prohibit lawyers from using GenAI. It permits lawyers to use GenAI to assist in legal practice but prohibits delegating the practice of law to GenAI without defining where permissible assistance becomes prohibited delegation.”
• “Beginning January 1, 2027, California lawyers using GenAI must protect confidential, personal identifying, and other nonpublic information; take reasonable steps to verify GenAI outputs and correct erroneous or hallucinated material they use; disclose GenAI use for documents submitted to a court; and consider disclosure for content provided to the public.”
• “Litigation workflows may need to change. An attorney responsible for submitting a Covered California court filing must personally verify all citations in the filing, regardless of whether GenAI was used.”
  Legal departments should consider internal and outside counsel GenAI practices, including approved AI tools, information governance controls, review of “AI-assisted work, court disclosure processes, and outside counsel guidelines.”
• “The statute leaves key operational questions unanswered. These include what degree of attorney involvement separates assistance from delegation, what GenAI use triggers court disclosure, and how the statute applies to increasingly autonomous or “agentic” AI tools.”

“Fisher Phillips Giving ‘Flexibility’ to its New Miami Lawyers, Who Will Split Practices Between Two Firms” —

• “Fisher & Phillips is allowing a seven-attorney group that opened its Miami office to also continue practicing with their former firm in a two-year arrangement that allows for ‘flexibility’ to continue serving clients in nonlabor and employment work.”
• “The Am Law Second Hundred firm announced Thursday that it was adding a seven-attorney group from Coral Gables-based employment and business law boutique Zumpano Castro—including its two named founders—to open Fisher Phillips’ first office in Miami.”
• “However, because all seven also have active practices in such areas as corporate, insurance defense and complex commercial litigation which are ‘outside the scope of the Fisher Phillips practice,’ they will split their time between both firms, said Fisher Phillips managing partner John Polson.”
• “The Florida Bar Association clarified in a 1994 opinion that a lawyer licensed in the state ‘is not ethically precluded from practicing simultaneously in two separate, bona fide law firms’—though is also subject to the Florida Rules of Professional Conduct governing conflicts of interest and requirements for disclosure and client consent if conflicts exist.”
• “Polson, who has practiced with Fisher Phillips for decades, said he believed the firm had been involved in similar dual-firm arrangements with attorneys when they joined the firm—but none for the length of time planned with the Zumpano attorneys. ‘We’ve done it on a short-term basis, but not for two years like we’re doing here,’ Polson said.”
• “Zumpano Castro will continue to operate as an independent firm with practice areas like real estate investment transactions and insurance defense litigation ‘outside the scope’ of Fisher Phillips’ labor and employment practices, said a spokesperson for Fisher Phillips.”
• “Polson said the addition of the seven-attorney team was ‘definitely not a merger’ between the two firms. ‘That is a separate law firm with its own business, and they have lawyers that don’t work for us as well as those that work for both firms,’ Polson said.”

“In Legal Malpractice Suits Against Am Law 200 Firms, Stranger Things Surfaced” —

• “Law.com Radar detected a raft of legal malpractice actions against the nation’s top law firms last month, including cases over ‘Stranger Things’ copyright claims, a busted marriage and a besmirched reputation. The platform detected 62 lawsuits in September involving Am Law 200 firms as litigants, 48 of which involved firms as defendants. By comparison, the platform flagged 53 new lawsuits in August involving Am Law 200 firms as litigants, including 36 cases against the firms. The numbers reflect a general increase in civil court filings in September, following a typical slowdown near the end of the summer season. Radar surfaced 171,379 new lawsuits in September, compared with 167,755 in August.”
• “Law firms Robins Kaplan and Boren Osher Luftman were hit with a lawsuit over millions of dollars in legal fees. The case was brought by their former client, Irish Rover Entertainment, which dropped its earlier copyright infringement action in August 2023 against Netflix over the smash hit ‘Stranger Things,’ a series about a group of kids in rural Indiana who confront creatures from the alternate dimension
• “Irish Rover’s suit against its two former law firms, filed last month, alleges that they had undisclosed conflicts in their simultaneous representation of an individual who provided funding for the litigation with interests that limited the firms’ representation of Irish Rover. The lawsuit, filed in California state court by Grant Shenon Almaraz, seeks to declare the fee agreements unenforceable and a determination that Irish Rover principal Jeffrey Kennedy is not personally liable for the fees.”
• “The suit follows an arbitrator’s decision, now on appeal by Irish Rover in a separate action, that awarded Robins Kaplan more than $1 million in fees and Boren Osher more than $523,250 in fees, according to the September lawsuit. Irish Rover’s September lawsuit also seeks the disgorgement of over $1.4 million it claims it paid the firms. The law firms did not respond to a request for comment.”
• “Meanwhile, former Orrick, Herrington & Sutcliff partner Kurt Mulville sued Fox Rothschild, claiming that one of its attorneys representing him in a divorce took a leave of absence to care for a sick family member. The pro se action, filed in California state court, claims that Fox Rothschild failed to notify Mulville of the lawyer’s leave and did not assign another lawyer to the case. The suit further claims that Fox Rothschild failed to appear in court on his behalf, triggering sanctions against Mulville, and ‘took no meaningful steps’ to advance his case, despite billing him for the firm’s work. Fox Rothschild did not respond to a request for comment.”
• “McDermott Will & Schulte along with Dechert and a lawyer who practiced at both firms were popped with a $75 million defamation suit filed by Eleni Tserpelis, a former partner at BDO USA. The federal lawsuit, filed in New York’s Southern District, alleges that attorney Michael Sheehan made false statements to legal news website Law360 claiming that Tserpelis was terminated from the accounting firm for performance failures. The suit, brought by Filippatos PLLC and Mesidor PLLC, also claims that Sheehan falsely asserted that Tserpelis used her son’s catastrophic medical condition as cover for her own shortcomings. McDermott Will, Dechert and Sheehan did not respond to a request for comment.”
• “… a wave of suits claiming that Am Law 200 firms played key roles in their clients’ financial scams, Ponzi schemes and fraudulent deals. Defendants include Willkie Farr & Gallagher; Morgan, Lewis & Bockius; and Burr & Forman, among others. Add to that pile Ashurst Perkins Coie, which was smacked with a complaint filed in Washington state court by trustees of the iCap Trust. The lawsuit alleges that Ashurst Perkins Coie was complicit in the squandering of $230 million from more than 1,800 investors in a Ponzi scheme. Ashurst
• “Also last month, Offit Kurman sued Actionstep, claiming the legal tech company failed to deliver promised systems integration of the law firm’s email, billing and document management. The suit seeks rescission of the contract, which allegedly included licenses for the company’s platform for $199,000 in the first year. Actionstep did not respond to a request for comment.”

“Private Equity Blocked From Buying Stakes in Tennessee Law Firms” —

• “Tennessee’s Supreme Court declined to allow private equity and other investors to directly buy stakes in the state’s law firms, while signaling openness to other regulatory changes related to the practice of law.”
• “The court in an Oct. 2 order said it will not change the state’s ban on non-lawyer ownership of law firms, maintaining widely observed US limitations on who can own and profit from legal services. The decision is a contrast to the minority of US states where law firms owned by non-lawyer investors, such as Arizona’s alternative business structures (ABSs), have their Supreme Courts’ blessing.”
• “‘At this time, the Court has not identified sufficient need or support for reforms related to non-lawyer ownership of law firms or fee-sharing with non-lawyers,’ the court said. ‘The Court may revisit this topic in the future as additional data regarding the success of these reforms becomes available.'”
• “Investors wanting to cash in on Tennessee law practices will need to employ the work-around of a management services organization. MSOs, businesses that run the administrative functions of law firms for a hefty fee, have gained favor in the investor community as a means for non-lawyers to share in the ownership and wealth of law firms without running afoul of the profession’s regulatory limitations.”
• “Other states such as Arizona and Utah have opened law firms to direct investment by modifying rules restricting ownership and profit of law practices to licensed attorneys. Interest in the Arizona program has cooled as the state tightened its requirements and investors turned their attention to MSO deals.”
• “‘I don’t see them as foreclosing non-lawyer ownership forever,’ Memphis-based Adams & Reese partner Lucian Pera said of the Tennessee court. ‘The court didn’t go down that road this time but it didn’t say this is antithetical to the core values of the profession. They just said we’re not doing this now.’ Pera advocated for the changes and helped draft Arizona’s changes to its law firm ownership rules.”

“Australian ban on new KPMG contracts still leaves room for $38.5M to flow to consulting firm” —

• “The federal government awarded KPMG AUD$38.5 million, even as the company is blocked from new federal government contracts after whistleblower allegations raised questions about its ethical soundness.”
• “KPMG has overhauled its Australian leadership, exited partners and announced nearly 390 job cuts as it grapples with the ongoing fallout from claims it misused confidential client information to win work. The Department of Finance in June told agencies to stop awarding work to the firm for callouts that closed between June 16 and Sept. 30 — later extended until Oct. 31 — as former senior public servant Ian Watt investigates the firm’s governance, culture, ethics and integrity frameworks.”
• “KPMG agreed to comply and has not bid for new work, but the terms of the freeze have still allowed six departments to send tens of millions of dollars to the firm — including through contracts that were finalized before it came into effect and amendments to existing arrangements.”

“Judges don’t need to recuse from cases with critical attorneys, MD panel says” —

• “Maryland judges don’t ‘necessarily’ have to recuse themselves from cases in which a lawyer actively opposed their appointment to the bench, the state’s judicial ethics panel said.”
• “Finding that the circumstances did ‘not implicate the constitutional grounds for disqualification,’ the Maryland Judicial Ethics Committee wrote in a Monday opinion that if the rules were interpreted otherwise, an attorney dissatisfied with a judge’s appointment or rulings ‘could judge shop simply by voicing that dissatisfaction on the record.'”
• “A judge, who was not named, had requested the ethics opinion after an attorney moved for the judge to recuse themselves from the proceedings ‘that day and from all future cases in which the attorney appears.’ The attorney said that they had previously contacted members of the judicial nominating commission and ‘anyone else who would listen’ about their opposition to the judge being appointed to the bench, according to the decision.”
• “The attorney also described a ‘contentious professional relationship’ with the judge, identifying criticisms the attorney had previously expressed concerning the judge’s ‘work ethic, ethics, honesty, candor, and professional conduct’ while they were an attorney.”
• “The judge said that they did not have personal knowledge of all of the matters the attorney had raised but believed they ‘could preside fairly and impartially over matters involving the attorney.’ The judge moved that day’s proceedings to another judge out of an ‘abundance of caution’ and said they would seek an ethics opinion.”
• “The panel found that the attorney’s opposition to the judge’s appointment — and the attorney’s personal criticism — don’t alone create ‘an objective basis for recusal.’ The exception would be if the judge themself didn’t believe they could ‘remain fair and impartial toward’ the attorney and their clients.”
• Opinion: here.

The latest from Bil Freivogel:

• Exotic Leasing, LLC v. 7th Gear Exotics LLC, No. 2:24-cv-3036 (S.D. Ohio Sept. 29, 2026).
  • “Plaintiff is suing several defendants for fraud. Two defendants moved to disqualify one of the lawyers for Plaintiff (‘Lawyer’) because Lawyer had at one point represented one of the defendants in an arguably related case. When Lawyer saw the issue, Lawyer withdrew from representing that defendant.”
  • “Nevertheless, in this opinion the court granted the motion to disqualify. The defendant claimed Lawyer violated the hot potato rule. Our take is the court believed even if Lawyer appropriately withdrew from representing the defendant, Lawyer then ran afoul of Rule 1.9 because he would now be opposing his former client in a matter substantially related to his representation of the defendant.”
• Peters v. Portsmouth Plumbing Servs., Inc., 2026 WL 2917599 (Va. App. Sept. 29, 2026).
  • “This opinion deals with the scope of a workers’ compensation settlement agreement, not a lawyer conflict. However, the court felt compelled to discuss, in Footnote 2, the extent to which a lawyer could represent both the injured employee and a medical provider in the same proceeding. The court said it is OK if both parties consent in writing and the the parties positions are not so adverse as to make the conflict unwaivable.”
• Grenier v. Drolet, 2026 QCCS 3282 (CanLII) (Super. Ct. Que. Sept. 10, 2026).
  • “Defendant Drolet moved to disqualify Plaintiff Grenier’s lawyer (‘P Lawyer’) and P Lawyer’s law firm. The problem was P Lawyer, while representing Grenier, spent eight months, in 2025 and 2026, in the law firm representing an impleaded party (‘IP’), not Drolet, in this case.”
  • “Nevertheless, the court, in this opinion, denied the motion to disqualify. While IP’s law firm did not do a rigorous conflicts check when P Lawyer arrived in 2025, and while it did not erect a formal screen between P Lawyer and the lawyers for IP, the circumstances, as a whole, were such a member of the public would not suspect P Lawyer would have obtained information about IP, P Lawyer could use against IP in this case. Further, the court noted other factors suggesting Drolet brought the motion to disqualify for strategic purposes.”
• Solos Tech. Ltd. v. Meta Platforms, Inc., No. 26-cv-10304-ADB (D. Mass. April 6, 2026).
  • Morgan Lewis (‘Morgan’) has appeared for Defendant Oakley, Inc. Oakley is an affiliate of Kopin Corp. In 2019 Morgan represented Kopin in transactions in which Solos purchased Kopin’s smart glasses business. Morgan dealt with Kopin’s CEO (‘CEO’) during those transactions. CEO then became CEO of Solos.”
  • “Solos moved to disqualify Morgan under Rule 1.9. In this Order the court denied the motion to disqualify. First, the court noted Morgan never represented Solos, and Kopin’s smart glasses business being transferred to Solos did not make Solos Morgan’s client. Nor, did Morgan ever represent CEO.”
  • “Also, Kopin’s retaining a minority ownership in Solos as a result of the 2019 transactions did not prevent Morgan from being adverse to Solos in this case. Last, the court held the transaction activity back in 2019 was not substantially related to the infringement claims in this case. Thus, no former client, and no substantial relationship.”

“Big Law’s Biggest Nightmare Isn’t Partner Poaching or Mergers. It’s AI” —

• “For all the attention Big Law is paying these days to partner poaching and merger mania, these are not the primary concerns that should be keeping law firm leaders up at night. That would be AI.”
• “We know AI threatens to undermine the economics of the traditional law-firm model. But there’s another risk: AI introduces unprecedented operational dangers into institutions, including law firms, that are built on confidentiality, privilege and trust.”
• “The immediate concern is not an ‘evil robot lawyer.’ It is that AI guardrails are not effectively guarding.”
  In the past few months we’ve seen evidence that systems can be monitored and placed in ‘sandboxes’ designed to restrict access to outside systems, but those protections are not perfect. In July, Anthropic disclosed evaluation incidents in which Claude models, operating without their normal cyber safeguards, gained unauthorized access to computer systems.”
• “This doesn’t mean an AI independently escaped a perfectly sealed prison. Human configuration and security failures were central to those incidents. But that is precisely the warning law firms should take seriously. And law firm efforts at governance won’t necessarily do the trick. AI moves faster than humans. By the time a flaw is detected, it could be too late.”
• “A system does not have to become superintelligent to cause a disaster. It only needs too much access, a badly configured environment and an objective it pursues in an unexpected way.”
• “Law firms are especially exposed because they live on information boundaries: privileged communications, litigation strategy, deal documents, trade secrets, discovery databases, personal information and confidential client files.”
• “Imagine an AI agent authorized to search, summarize, draft, send emails, access databases, execute code, or interact with external systems. The question is no longer merely whether it will produce a wrong answer. It is: what happens when the AI is wrong and has agency?”
• “For a law firm, the consequences of an AI failure can be severe. Mishandled privilege, exposed discovery material, an unauthorized communication, a fabricated authority in a filing, or a breach of a client information barrier could trigger malpractice claims, sanctions, regulatory scrutiny, loss of privilege and reputational damage. Unlike a junior associate, an autonomous agent can act at machine speed and potentially repeat an error across thousands of documents or matters.”
• “The profession has established ways to supervise people—ethics rules, conflicts systems, access controls, audits and training. But who will supervise the AI agents working through the night? Who is responsible when the AI takes an action no one specifically instructed it to take? Who audits its process rather than merely reviewing its output? What happens when its objective conflicts with the client’s interests, the firm’s interests, or the system’s own interpretation of its instructions?”
• “Law firm leaders don’t need to resolve every debate about whether AI will become genuinely autonomous or whether the most extreme scenarios are likely. But they need to recognize the risks. No firm wants to be caught having placed extraordinary power inside an institution built on confidentiality without adequate means of controlling it. And experts agree that no one knows whether AI can be controlled.”

“Fla. Firm Looks To Dodge Bank’s DQ Bid In Trade Secrets Suit” —

• “Florida-based Trenam Law fought Friday against a disqualification bid in a trade secrets case over residential solar lending technology, arguing that its prior representation of defendant Climate First Bank ended two years ago and was limited to handling a few real estate deals.”
• “In a response to the disqualification bid, Trenam Law said Climate First overstates the firm’s prior representation of the bank, which involved three real estate lending matters and one general litigation advice matter and ended by September 2024.”
• “The limited representation of Climate First should not preclude Trenam Law from representing plaintiff Atmos Financial PBC, a financial technology platform, in this ‘wholly unrelated’ dispute over the alleged misuse of solar-lending technology and development of a competing platform, according to Trenam Law.”
• “Climate First argued that Trenam Law attorneys met with the leadership team members responsible for developing and implementing the operating procedures for the solar program. But the law firm said just because those people were familiar with the solar program does not mean they shared confidential information about it with the Trenam Law attorneys when discussing unrelated real estate lending matters.”
• “‘The fact that Trenam once met with certain CFB leadership team members about commercial and SBA loans who were otherwise familiar with CFB’s solar lending program does not support an inference that Trenam obtained confidences relevant to CFB’s decisions to purport to partner with plaintiff, to solicit plaintiff’s confidential and proprietary information, and to use that information to develop a competing residential solar lending product and platform,’ the law firm said.”
• “Climate First hired Trenam Law in July 2021. The bank says that between 2021 and 2025, Trenam Law and Climate First’s employees exchanged approximately 1,411 emails on a variety of issues.”
• “In its disqualification motion, the bank said it told Trenam Law about a variety of matters affecting its banking operations, including liability and risk-management issues, loan and mortgage transactions, line-of-credit closing procedures and internal policies and practices.”
• “But Trenam Law says its work for Climate First was limited to preparing notes, mortgages and other lending documents for two real estate lending matters. Neither of the loans were related to the bank’s residential solar lending program, the law firm said.”
• “A third real estate lending matter was opened because the bank had issued a commitment letter to a borrower, but the borrower ultimately chose a different bank, according to the firm.”
• “In addition, Trenam Law said its attorneys provided advice on a narrow legal question regarding a proposed change to the bank’s terms and conditions governing business accounts and the provision of notice of forgery. The firm provided an answer to that narrow legal question on Sept. 11, 2023 and did not provide any further legal advice on any litigation issues, according to the firm.”
• “Trenam Law said Climate First has not sought advice from the firm since September 2024.”

“Gov. Newsom Signs Bill Targeting Unethical Client-Recruiting” —

• “California lawyers who use non-attorneys to recruit clients could face $25,000 in civil penalties as well as summary disbarment under a measure signed into law by Gov. Gavin Newsom.”
• “AB 2039, signed by the governor late Sunday, offers protections to whistleblowers who report attorney misconduct to law enforcement or the state bar and places new restrictions on lawyers who lend money to clients.”
• “The provisions are a response to reports earlier this year that plaintiffs firm Downtown L.A. Law Group, or DTLA, improperly offered financial incentives to individuals to represent them in childhood sexual assault claims against Los Angeles County.”
• “‘If we’re going to demand that corporations, government, and powerful institutions be held accountable, we have to be, and we are, willing to hold ourselves to that same standard,’ CAOC President Doug Saeltzer said.”
• “Neither prosecutors nor the state bar have charged DTLA attorneys with wrongdoing in connection with the firm’s work on sexual abuse claims, although District Attorney Nathan Hochman has said he is investigating DTLA’s efforts to tap into part of Los Angeles County’s $4 billion settlement fund. DTLA attorneys have denied any misconduct. Daniel Azizi, one of the firm’s co-founders, did not return a message seeking comment on Monday.”
• “AB 2039 is among a handful of legislative responses the plaintiffs bar lobby introduced this year after both the DTLA allegations surfaced and after repeated corporate messaging targeting so-called billboard lawyers. In June, the CAOC agreed to limits on medical cost recoveries as part of a deal with Uber to stop a potential ballot initiative fight. In August, the lobby was part of a group that crafted legislation placing new restrictions on childhood sexual assault claims. And just last week, Newsom signed CAOC-backed legislation aimed at limiting investors’ influence over legal decisions.”
• “Additionally, lawyers will be required to sign contracts with any clients to whom they loan money. Those agreements must include repayment terms fees and conditions, list all potential conflicts of interest and be interest-free. Lawyers can be sanctioned up to $15,000 per violation and face possible state bar discipline.”
• “The new law also bars retaliation against clients, law firm employees, contractors, vendors and ‘any person with a professional relationship to an attorney or law firm’ who report attorney misconduct. “

“Hogan Lovells Cadwalader hacked by Silent Ransom Group; re-attacked after they wouldn’t pay” —

• “When New York City’s oldest law firm, Cadwalader, Wickersham & Taft, merged with Hogan Lovells in 2022, it combined two powerhouse firms. Yet despite their resources and knowledge of cyberattacks, and despite repeated government alerts and reporting by this site about the risk to law firms, they fell prey to Silent Ransom Group (SRG).”
• “SRG provided details of the incident to DataBreaches through a spokesperson. According to that spokesperson, SRG first gained access to Hogan Lovells’ legacy infrastructure on August 12, 2026, using a new set of tools, and exfiltrated information from several machines on the network. They did not specify the tools used, but noted that Hogan Lovells’ legacy infrastructure had a separate firewall, separate file system, and other security protocols and authorization mechanisms.”
• “They reportedly remained in Hogan Lovells’ network for 24 hours, and left on their own ‘after gathering enough data.'”
• “‘What’s important about this incident is that it is an attack carried out on two of the most top notch security systems among law firms,’ their spokesperson stated, adding, ‘and more importantly, a very active law firm in cyber security field especially after their merger.'”
• “Part of negotiations chat log. Provided with redaction by Silent Ransom Group to DataBreaches.net.”
• “According to SRG, they obtained over 50 GB of data, which they estimated included approximately 500 passports, driver’s licenses, and Social Security numbers. SRG has published all the data they exfiltrated from the first attack on their leak site.”
• “SRG provided DataBreaches with data from the second attack so we could preview it. They reportedly will upload that data to their leak site this week.”
• “Inspection of the second data set revealed mostly internal and business documents and emails. We also found passports that were still valid, personal and credit information on a human trafficking survivor, and detailed personal financial and investment records of one of HLC’s senior counsels. As we saw with the Greenberg Traurig incident, it appears a senior counsel for HLC uploaded their personal files to their office computer, and SRG exfiltrated them all.”